DOL or not, there is a new fiduciary standard expectation

December 8, 2016 by Matt Marcum

A close-up of a young couple talking to an advisor about the DOL Conflict of Interest Rule

About the author:

Matt Marcum

Sales trainer

Matt is a 2009 graduate of the University of Michigan and has worked in multiple roles at Advicent. He loves talking about financial planning and the value it brings both to advisors and to their clients. When not discussing FinTech trends with advisors, he enjoys spending his time outdoors with his fiancée and their dog.

What does the election mean for the new fiduciary standard? 

After the 2016 presidential election, results showed a win for the Trump/Pence ticket and control of both houses of Congress by Republicans. With these results, there seems to be a renewed optimism among some financial industry insiders that the DOL Conflict of Interest Rule could be repealed or significantly revised. Regardless of whether of the rule is repealed or not, it is still clear that the public is now expecting a higher level of service from financial professionals and firms have already invested a lot of time and money in making adjustments for these shifting expectations.

At Advicent, we believe financial planning is a core component not only for the upcoming DOL legislation but for establishing a trusting relationship between advisor and client. A holistic financial plan establishes goals, defines time horizons, and keeps the priority on long-term goal achievement instead of day-to-day market fluctuations.

Click here to download more information about financial technology and the new fiduciary standard.

Beyond our vested interest in providing financial planning tools to advisors, studies have actually shown that providing financial plans to clients has helped RIA firms grow their AUM faster than firms that do not.

Think about that: RIA firms that already conform to a fiduciary standard are seeing that financial planning and financial planning technology help to both increase their assets under management and have led to a positive net client change.

Click here to learn how the financial planning tools within The Compliance Blueprint from Advicent can be leveraged in your DOL compliance strategy.